The recent bullish breakout above 1.3000 has enabled further bullish advancement towards 1.3250-1.3270 where the upper limit of the new movement channel came to meet the GBP/USD pair.
Later on, further bullish advancement was expressed towards 1.3380-1.3400 where the pair looked overbought.
The price levels of (1.3380-1.3400) have prevented further bullish movement for the past few weeks.
Bearish target was targeted around 1.3300. However, the pair has failed to pursue towards lower targets.
Instead, a bullish spike was expressed towards 1.3480-1.3500 where the upper limit of the depicted movement channel has previously provided temporary bearish pressure on the pair.
Shortly after, another bullish spike has recently been demonstrated towards 1.3600 where the upper limit applied considerable bearish rejection again.
Recently, the GBPUSD pair looked overbought while consolidating above the key-level of 1.3400.
As expected, bearish reversal was initiated around 1.3600. A quick bearish decline was demonstrated towards 1.3200.
Hence, intermediate-term outlook turns into bearish provided that the pair maintains movement below 1.3400.
On the other hand, any bullish pullback towards 1.3400 should be considered for bearish reversal and a valid SELL Entry.
